july 31, 2007 mazda motor corporation fy2007 first …€¦ · 1st half 2nd half full year revenues...
TRANSCRIPT
1
FY2007 FIRST QUARTER RESULTS
MAZDA MOTOR CORPORATION
July 31, 2007
2
Overview
FY2007 1Q Results
Key Marketing Initiatives Update
In Summary
OUTLINE
3
OVERVIEW
4
FY2007 1Q HIGHLIGHTS
Operating Profit Up 9% to ¥32.3 Billion
Revenues Up 11%
Expanded Investment for the Future
Inventory Adjustment on Track
Joint Venture Operation in China CommencedEngine Mass Production
5
FY2007 1Q RESULTS
6
FY2007 1Q FINANCIAL METRICS
(Billion yen) First Quarter ChangeFY2007 FY2006 Amount Pct.
Revenues 814.3 734.3 80.0 11 %
Operating Profit 32.3 29.6 2.7 9 %
Ordinary Profit 21.2 24.0 (2.8) (12) %
Profit Before Tax 19.4 22.9 (3.5) (15) %
Net Income 2.5 6.6 (4.1) (62) %
Operating ROS 4.0 % 4.0 % 0.0 Pts -
EPS (Yen/Share) 1.8 4.7 (2.9) (62) %
7
KEY DATA
First Quarter
FY2007 FY2006 Change
Global Retail Volume (000) 323 325 (1) %(Excl Volume Produced in Hainan) 323 309 4 %
Exchange Rates Yen / U.S. Dollar 121 115 ¥ 6 Yen / Euro 163 144 ¥ 19
8
DOMESTIC & OVERSEAS REVENUE CHANGES
11%
(8)%
19%
(10)%
(5)%
0%
5%
10%
15%
20%
Total Domestic Overseas
(Billion yen)FY07 814.3 197.2 617.1
Vol. & Mix 4 %Exchange 7 %
FY06 734.3 215.1 519.2
FY2007 1Q Compared With FY2006 1Q
9
JAPAN
First QuarterFY2007 FY2006 Change
Retail Volume (000)* 57 61 (7) %
Maintained Share Despite Fierce Market Environment
* Excluding volume sold under Ford Brand
10
NORTH AMERICA
Canada and Mexico Contributed to Volume Growth
First QuarterRetail Volume (000) FY2007 FY2006 Change
United States 74 73 0 %Canada & Other * 34 29 20 % North America Total 108 102 6 %
* Including Mexico and Puerto Rico
11
EUROPE
Sales Growth in Russia Offset Lower Sales in Germany
First QuarterFY2007 FY2006 Change
Retail Volume (000)* 78 77 0 %
* Including Turkey
12
CHINA
Sales of Mazda3 Increased
First QuarterFY2007 FY2006 Change
Retail Volume (000) 16 29 (44) %Excl. Volume Produced in Hainan 16 13 26 %
13
OTHER MARKETS
CX-7, BT-50 and Mazda3 Contributed to Sales Increase
First QuarterFY2007 FY2006 Change
Retail Volume (000) 64 56 15 %
14
2.7
0.2
9.2
(3.0)
(0.6)
(8.2)
5.1
(10)
(5)
0
5
10
TotalOper.
Vol&Mix Exch. ProductEnhanc.
CR Mktg.Exp.
OtherCosts
FY07 32.3FY06 29.6
(Billion yen)
FY2007 1Q Compared With FY2006 1Q
OPERATING PROFIT CHANGES
[Factors for Increase]- Higher volume in Canada and Other Markets[Factors for Decrease]- Inventory reduction measures - Lower registration vehicle demand in Japan
15
2.7
0.2
9.2
(3.0)
(0.6)
(8.2)
5.1
(10)
(5)
0
5
10
TotalOper.
Vol&Mix Exch. ProductEnhanc.
CR Mktg.Exp.
OtherCosts
FY07 32.3FY06 29.6
US Dollar 1.4Euro 5.1Other 2.7
FY2007 1Q Compared With FY2006 1Q(Billion yen)
OPERATING PROFIT CHANGES
16
2.7
0.2
9.2
(3.0)
(0.6)
(8.2)
5.1
(10)
(5)
0
5
10
TotalOper.
Vol&Mix Exch. ProductEnhanc.
CR Mktg.Exp.
OtherCosts
FY07 32.3FY06 29.6
Product upgrades (1.6)Regulations (1.4)
Net of raw material price increase
FY2007 1Q Compared With FY2006 1Q(Billion yen)
OPERATING PROFIT CHANGES
17
2.7
0.2
9.2
(3.0)
(0.6)
(8.2)
5.1
(10)
(5)
0
5
10
TotalOper.
Vol&Mix Exch. ProductEnhanc.
CR Mktg.Exp.
OtherCosts
FY07 32.3FY06 29.6
Higher R&D cost and Depreciation
FY2007 1Q Compared With FY2006 1Q(Billion yen)
OPERATING PROFIT CHANGES
18
KEY MARKETING INITIATIVES UPDATE
19
U.S. DEALER INVENTORY
US Spec.
70.9
82.2
60
65
70
75
80
85
90
Mar-07 Jun-07
(000 units)
U.S. Dealer Inventory Reduction is On Track.
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US Spec.
U.S. CROSSOVER MONTHLY VOLUME
3,313 3,505
1,231
1,875
0
1,000
2,000
3,000
4,000
5,000
6,000
FY06 4Q FY07 1QCX-7 CX-9
U.S. CX-7/CX-9 Monthly Sales Volumes Have Grown.
4,544
5,380
Monthly Average
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US Spec.
U.S. CX-9 LAUNCH ACTIONS
Strong support is planned for FY07 to maintain a consistent presence and build awareness
Mix adjusted to promote faster selling GT model.
Launch plan is on track.
22
JAPAN - NEW DEMIO LAUNCH STATUS
US Spec.
Order pace exceeding expectations.
Higher than planned mix of “Sport” and CVT models.
Area-by-area program and display events planned to further promote awareness.
23
EUROPE - NEW MAZDA2 / CX-7 LAUNCH STATUS
US Spec.
Mazda2
Sales start planned for September.
Positive feedback from the press especially on downsizing & weight reduction concept, low emissions, crisp handling and design.
CX-7
Sales start planned for August.
Enquiries exceeding expectation; pre-orders in Russia more than 2,000 units.
24
STATUS IN OTHER MARKETS
US Spec.
Australia
Six consecutive month of record sales in June.
CX-7 sales started from November ’06, contributing to growth.
Two upcoming launches, Mazda2 in September, CX-9 in December will further support sales momentum.
Israel
Mazda is No. 1 Brand this year. Targeting 12th consecutive year of No. 1 position achievement.
Colombia
Achieving growth with Mazda3 and newly launched BT-50, reinforcing Mazda Brand promotion.
25
IN SUMMARY
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IN SUMMARY
Operating Profit Up 9% to ¥32.3 Billion
Revenues Up 11%
Introduce New Demio in Japan, Europe andOther Markets
Steadily Improve North America Business
Dealer Inventory Optimization is On Track
No Change in First Half and Full YearProjections
27
FY2007 FINANCIAL METRICS
FY2007(Billion yen) 1st Half 2nd Half Full Year
Revenues 1580.0 1740.0 3320.0
Operating Profit 60.0 100.0 160.0Ordinary Profit 50.0 90.0 140.0Profit Before Tax 45.0 85.0 130.0Net Income 25.0 60.0 85.0
Operating ROS 3.8 % 5.7 % 4.8 %
EPS (Yen/Share) 17.8 42.6 60.4
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APPENDIX
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KEY DATAFirst Quarter
FY2007 FY2006 ChangeConsol. Wholesales (000)
Japan 57 65 (8)North America* 97 98 (1)Europe 68 62 6Other Markets 58 47 11Total 280 272 8
Global Retail Volume (000)Japan 57 61 (4)North America* 108 102 6Europe 78 77 1China 16 29 (13)Other Markets 64 56 8Total 323 325 (2)
* Including Puerto Rico
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DISCLAIMER
The projections and future strategies shown in this presentation are based on various uncertainties including without limitation the conditions of the world economy in the future, the trend of the automotive industry and the risk of exchange-rate fluctuations. So, please be aware that Mazda's actual performance may differ substantially from the projections.
If you are interested in investing in Mazda, you are requested to make a final investment decision at your own risk, taking the foregoing into consideration.Please note that neither Mazda nor any third party providing information shall be responsible for any damage you may suffer due to investment in Mazda based on the information shown in this presentation.